The Impact of Money Laundering on Customer Due Diligence

The report focuses on recent developments as a result of AML regulation, and its effect on global regulation.

It provides an overview of key drivers and vendors operating in financial risk management.

It provides detailed analysis of the key operational and technological trends and challenges that institutions face due to the rapid rise in money laundering activity and frequent regulatory upgrades.

It provides insight into the impact of money laundering on businesses, and the CDD and KYC initiatives that services providers are taking to deal with risk and compliance.

Summary

The Panama Papers scandal of 2016 led to the leaked individuals’ names and associations being scrutinized by governments in the UK, Germany, France, Italy, Spain and Australia among others, which is unsurprising given that the financial services industry is in the midst of preparing for new stricter regulation to commence.

The Common Reporting Standards regulation, The Fourth Money Laundering Directive, the Foreign Account Tax Compliance Act and Financial Action Task Force recommendations on money laundering that have been proposed and enacted in Europe and the US are intended to strengthen the anti-money laundering (AML) regulatory environment and increase pressure on institutions to comply.

Financial institutions need to do more to be compliant with their customer due diligence (CDD) and know your customer processes (KYC). They need to check how secure their clients' data is internally. The same resonates with the provision of retail and not-for-profit services and the need to minimize a business’ exposure to risk as a result of failure to comply with AML regulations.

Scope

The report is divided into three chapters, which cover the following areas: